Author Question: In modern economies, the supply of money depends mainly on the economy's ________. A) tax rates ... (Read 43 times)

jeatrice · **on:** Jun 30, 2018

In modern economies, the supply of money depends mainly on the economy's ________.

A) tax rates
B) mining of precious metals
C) net exports
D) growth of output of goods and services
E) none of the above

Question 2

The main reason that many businesses fail when the price level is falling is that ________.

A) deflation causes a decline in short-run aggregate supply
B) as prices fall, businesses are unable to predict the quantity of output they will be able to sell
C) the real value of the firms assets declines in proportion to the decrease in the price level
D) falling prices mean that regular loan payments become increasingly difficult